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$1 billion stated goal for Twitter initial public offering

By Catholic Online (NEWS CONSORTIUM)
October 4th, 2013
Catholic Online (www.catholic.org)

In a grandiloquent announcement, social networking tool Twitter - the favored means of communication for rock stars, politicians and movies stars - will now seek to raise a $1 billion initial public offering, or IPO. It's the largest such offering since Facebook's 2012 debut. Eight years young, the announcement gave potential investors their first glance at its Twitter's financials.

LOS ANGELES, CA (Catholic Online) - For some, it's a dicey proposition. Twitter, first founded in 2006 has never turned a profit. The tool has been a steady loser with an uninterrupted history of losses, totaling $419 million since its inception. However, revenue almost tripled to $316.9 million in 2012, from $106.3 million in 2011.

Twitter disclosed last month that it had filed confidential IPO papers to start the process of going public. The San Francisco-based company unsealed the papers with the Securities and Exchange Commission on Thursday.

Twitter booked a larger loss in the first half of this year than a year earlier, but gained revenue. The company lost $69.3 million in the first six months of 2013, compared with $49.1 million at the same time last year. Revenue more than doubled to $254 million from $122 million.

Twitter said it intends to use the ticker symbol "TWTR," although the company did not say which stock exchange it plans to list its shares on.

The service had 218.3 million monthly active users, on average, as of the end of June, up 44 percent from a year earlier. That compares with Facebook's nearly 1.2 billion and LinkedIn's 240 million. Mobile is the primary driver of its business, with 75 percent of the monthly active users accessing Twitter from a mobile device.

The initial public offering from Twitter had long been expected. The company has been building up its advertising products and working to boost ad revenue in preparation. While considered mall compared to Facebook, which saw its hotly anticipated IPO implode last year amid worries about its ability to grow mobile ad revenue.

Twitter's moneymaking potential has minted the company with an estimated market value of $10 billion, based on the appraisals of venture capitalists and other early investors. The IPO could value it higher or lower.

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Article brought to you by: Catholic Online (www.catholic.org)